Mike Khouw Sees Unusual Options Activity In MGM Resorts

On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in MGM Resorts International MGM. He saw two times the average daily call volume on Tuesday, ahead of earnings, scheduled on Wednesday after the bell.

The options market is implying a move of 6.8% in either direction until the end of the week. The stock moved 4.8% on the event, over the last eight quarters.

Options traders continue to press their bullish bets, said Khouw. The most active options on Tuesday were the February $36 calls. Traders paid $1.40 for them, which sets the breakeven for the trade at $37.40 or 4.41% above the closing price on Tuesday.